Financial Engines 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	FNGN
Entity Registrant Name	FINANCIAL ENGINES, INC.
Entity Central Index Key	1,430,592
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,317,478

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 197,708	$ 134,246
Accounts receivable, net	114,037	103,256
Prepaid expenses	7,739	7,370
Other current assets	4,466	3,468
Total current assets	323,950	248,340
Property and equipment, net	25,446	24,532
Intangible assets, net	199,992	205,751
Goodwill	312,020	312,020
Long-term deferred tax assets	47,564	40,504
Direct response advertising, net	4,757	5,849
Other assets	2,237	3,140
Total assets	915,966	840,136
Current liabilities:
Accounts payable	27,622	36,780
Accrued compensation	20,470	27,667
Deferred revenue	5,185	4,701
Dividend payable	4,423	4,350
Other current liabilities	2,392	4,343
Total current liabilities	60,092	77,841
Long-term deferred rent	11,059	12,269
Long-term tax liabilities		2,207
Other liabilities	491	488
Total liabilities	71,642	92,805
Contingencies (see Note 11)
Stockholders’ equity:
Preferred stock, $0.0001 par value - 10,000 authorized as of December 31, 2016 and September 30, 2017; None issued or outstanding as of December 31, 2016 and September 30, 2017
Common stock, $0.0001 par value - 500,000 authorized as of December 31, 2016 and September 30, 2017; 63,476 and 64,498 shares issued and 62,199 and 63,221 shares outstanding as of December 31, 2016 and September 30, 2017, respectively	6	6
Additional paid-in capital	828,699	782,079
Treasury stock, at cost (1,277 shares and 1,277 shares as of December 31, 2016 and September 30, 2017, respectively)	(47,637)	(47,637)
Retained Earnings	63,256	12,883
Total stockholders’ equity	844,324	747,331
Total liabilities and stockholders’ equity	$ 915,966	$ 840,136

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	64,498,000	63,476,000
Common stock, shares outstanding	63,221,000	62,199,000
Treasury stock, shares	1,277,000	1,277,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Professional management	$ 114,088	$ 102,641	$ 331,488	$ 281,518
Platform	6,528	7,035	20,206	21,306
Other	1,631	2,748	3,122	7,891
Total revenue	122,247	112,424	354,816	310,715
Costs and expenses:
Cost of revenue	53,253	50,230	158,064	136,101
Research and development	10,771	9,599	32,458	27,833
Sales and marketing	19,933	21,743	60,437	61,892
General and administrative	8,941	11,189	29,701	35,598
Amortization of intangible assets, including internal use software	4,289	4,012	12,683	11,137
Loss on reacquired franchisee rights		4,092		4,092
Total costs and expenses	97,187	100,865	293,343	276,653
Income from operations	25,060	11,559	61,473	34,062
Interest income, net	351	149	614	133
Other income (expense), net	(29)	(185)	(201)	(645)
Income before income taxes	25,382	11,523	61,886	33,550
Income tax expense	9,963	4,376	21,490	14,031
Net and comprehensive income	$ 15,419	$ 7,147	$ 40,396	$ 19,519
Dividends declared per share of common stock	$ 0.07	$ 0.07	$ 0.21	$ 0.21
Net income per share attributable to holders of common stock
Basic	0.24	0.12	0.64	0.32
Diluted	$ 0.24	$ 0.11	$ 0.62	$ 0.32
Shares used to compute net income per share attributable to holders of common stock
Basic	63,181	61,838	62,877	60,608
Diluted	64,642	63,001	64,660	61,657

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 40,396	$ 19,519
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,312	6,670
Amortization of intangible assets	12,273	10,819
Stock-based compensation	26,617	24,307
Amortization of deferred sales commissions	805	1,244
Amortization and impairment of direct response advertising	2,828	3,547
Amortization of discount on short-term investments		(5)
Provision for doubtful accounts	450	689
Write-off of notes receivable		290
Deferred tax	17,968	3,937
Loss on fixed asset disposal	155	200
Loss on sale of short-term investments		18
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(11,231)	(7,976)
Prepaid expenses	(452)	(998)
Direct response advertising	(1,751)	(2,778)
Other assets	(2,060)	(908)
Accounts payable	(10,560)	572
Accrued compensation	(7,197)	(988)
Deferred revenue	420	274
Deferred rent	(531)	948
Other liabilities	(22)	(480)
Net cash provided by operating activities	74,420	58,901
Cash flows from investing activities:
Purchase of property and equipment	(5,574)	(5,497)
Capitalization of internal use software	(6,213)	(5,295)
Sale of short-term investments		39,923
Cash paid for acquisitions, net of cash acquired		(262,405)
Net cash used in investing activities	(11,787)	(233,274)
Cash flows from financing activities:
Payments on capital lease obligations	(100)	(80)
Payments related to business combinations	(2,845)	(1,771)
Net share settlements for minimum tax withholdings	(3,788)	(688)
Proceeds from issuance of common stock	20,726	3,371
Cash dividend payments	(13,164)	(12,869)
Net cash (used in) provided by financing activities	829	(12,037)
Net (decrease) increase in cash and cash equivalents	63,462	(186,410)
Cash and cash equivalents, beginning of period	134,246	305,216
Cash and cash equivalents, end of period	197,708	118,806
Supplemental cash flows information:
Income taxes paid, net of refunds	6,175	2,927
Interest paid	61	10
Non-cash operating, investing and financing activities:
Issuance of common stock related to acquisition		267,018
Unpaid purchases of property and equipment	1,596	760
Purchase of property and equipment with noncash tenant improvement allowance	162	1,952
Purchase of property and equipment under capital lease	243
Capitalized stock-based compensation for internal use software	711	569
Capitalized stock-based compensation for direct response advertising	56	68
Dividends declared but not yet paid	$ 4,423	$ 3,713

Organization and Description of

Organization and Description of the Business	9 Months Ended
	Sep. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of the Business	NOTE 1 — Organization and Description of the Business The Company Financial Engines, Inc. (the Company) was incorporated on May 13, 1996 under the laws of the State of California and is headquartered in Sunnyvale, California. In February 2010, the Company was reincorporated under the laws of the State of Delaware. The Company is a leading provider of independent, technology-enabled comprehensive financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company helps individuals, either online or with an advisor, develop a strategy to reach investing and retirement goals by offering a comprehensive set of services, including holistic, personalized plans for saving and investing, assessments of retirement income, and the option to meet face-to-face with a dedicated financial advisor at one of more than 130 The Company’s business model is based primarily on providing advisory services to DC plan participants in the workplace. The Company also provides advisory services directly to individual clients outside of the workplace. Clients are defined as individuals who utilize our services, including Professional Management, Personal Advisor, Online Advice, education or guidance. The Company works with three key constituencies: individual investors, plan sponsors (employers offering DC plans to their employees) and plan providers (companies providing administrative services to plan sponsors). The Company’s investment advisory and management services are provided through its subsidiary, Financial Engines Advisors L.L.C., a federally registered investment adviser. In February 2016, the Company completed the acquisition of Kansas City 727 Acquisition LLC, a Delaware

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	NOTE 2 — Basis of Presentation and Principles of Consolidation Interim Financial Statements The accompanying condensed consolidated financial statements and notes thereto are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as filed on February 27, 2017 with the SEC (the 2016 Annual Report). The Condensed Consolidated Balance Sheet as of December 31, 2016, included herein, was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for the fair presentation of the Company’s Balance Sheets as of December 31, 2016 and September 30, 2017, the Company’s Statements of Income for the three and nine months ended September 30, 2016 and 2017 and the Company’s Statements of Cash Flows for the nine months ended September 30, 2016 and 2017. The results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Segment Information The Company’s chief operating decision-maker, its chief executive officer, reviews the Company’s operating results on an aggregate, consolidated basis and manages its operations as a single operating segment. In addition, all of the Company’s operations and assets are based in the United States. Business Combinations The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. Goodwill and Intangible Assets Goodwill consists of the excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment each year in the fourth quarter, or more frequently if facts and circumstances warrant a review, by using a two-step process. The Company has concluded that it has a single reporting unit for the purpose of goodwill impairment testing, and accordingly, all goodwill resides within a single reporting unit. The Company compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, the Company would perform a measurement of the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied fair value of the goodwill. If the carrying amount of the goodwill is greater than the implied value, an impairment loss is recognized for the difference. There have been no goodwill impairment losses recognized to date. The Company does not have any indefinite lived intangible assets besides goodwill. Intangible assets with definite useful lives are recorded their acquired value less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances raise doubt about recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. There were no impairments or changes in useful lives of acquired intangible assets for the periods presented. Intangible assets consist primarily of customer relationships, trademarks, trade names, internal use software and reacquired franchisee rights. These intangible assets are acquired through business combinations or, in the case of capitalized software costs, are internally developed. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from less than 1 year to 20 years. Long-Lived Assets Long-lived assets, such as property, equipment, direct response advertising and intangible assets, including capitalized internal use software, subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets or asset group will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows of the assets or asset group are less than their carrying amount, the Company would recognize an impairment loss based on any excess of the carrying amount of the asset or asset group over their fair value. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment charges related to long-lived assets were immaterial for the periods presented. Revenue Recognition The Company recognizes revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery has occurred or the service has been made available to the customer, which occurs upon completion of implementation and connectivity services, if applicable, and acceptance by the customer; • The collectability of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. The Company generates its revenue through three primary sources: professional management, platform and other revenue. Professional Management. The Company derives professional management revenue from client fees paid by or on behalf of both DC and individual investor clients who are enrolled in one of its discretionary portfolio management services (either the Professional Management service or the Personal Advisor service) for the management of their account assets. The Company continues to use the term professional management revenue to include revenue from both the Professional Management and Personal Advisor services. The Company’s Professional Management service is a discretionary personalized portfolio management service for DC participants who want to work with or delegate the management of their retirement accounts to a professional with the help of an advisor team. Personal Advisor is a personalized service that can provide discretionary portfolio management on a client’s 401(k), IRA and/or taxable assets, as well as comprehensive financial planning and a dedicated advisor representative that participants can meet with in person, online or by phone. The Company’s retirement income solutions, including Income+ and Retirement Paycheck, which are features of its Professional Management and Personal Advisor services, respectively, provide clients approaching or in retirement with discretionary portfolio management with an income objective and steady monthly payments from their accounts during retirement, including Social Security claiming guidance and planning. The services are generally made available to prospective clients by written agreements with the plan provider, the plan sponsor and the plan participant in a DC plan (and may be provided on a subadvisory basis) and by written agreements with individual investors. The Company’s arrangements with clients using discretionary portfolio management services generally provide for fees based on the value of assets managed and are generally payable quarterly in arrears. The majority of client fees for DC accounts, for both advisory and subadvisory relationships, are calculated on a monthly basis, as the product of client fee rates and the value of assets under management (AUM) at or near the end of each month. For IRA and taxable accounts, client fees are calculated on a quarterly basis at the end of each quarter. Platform. The Company derives platform revenue from recurring, subscription-based fees for access to its services, including Online Advice, education and guidance, and to a lesser extent, from setup fees. Online Advice is a non-discretionary, Internet-based investment advisory service, which includes personalized online savings and investment advice and retirement income projections for clients who want to manage their retirement themselves. The arrangements generally provide for fees to be paid by the plan sponsor, plan provider or the DC plan itself, depending on the plan structure. Platform revenue is generally paid annually or quarterly in advance and recognized ratably over the term of the subscription period beginning after the completion of customer setup and data connectivity. Setup fees are recognized ratably over seven years and are immaterial for the periods presented. Other. Other revenue includes reimbursement for a portion of marketing and client materials from certain subadvisory relationships. Non-retirement account servicing fees were applicable for the period of February 1, 2016 to December 31, 2016. The fees for non-retirement account servicing do not impact client fees paid for discretionary portfolio management services, and are disclosed in the applicable Form ADV of the Company’s advisory subsidiaries. Franchise royalty fees were applicable for the period of February 1, 2016 to September 30, 2016, as the Company had acquired all remaining franchises as of October 2016. Professional management revenue earned subsequent to the respective acquisition date of the franchises is included in professional management revenue. The franchise royalty fees were recognized as revenue as the services were performed by the franchisees and were based on specified percentages of the franchisees’ advisory fees billed to their clients, which were primarily based on predetermined percentages of the market value of the AUM and were affected by changes in the AUM. Costs associated with reimbursed printed fulfillment materials are expensed to cost of revenue as incurred. Cost of Revenue Cost of revenue includes fees paid to plan providers for connectivity to plan and plan participant data, printed materials fulfillment costs for certain subadvisory relationships for which a portion are reimbursed, printed client materials, and employee-related costs for in-person dedicated advisor centers and call center advisors, operations, implementations, technical operations, portfolio management and client service administration. Costs in this area are related primarily to payments to third parties, employee compensation and related expenses, facilities expenses, purchased materials and depreciation. The expenses included in cost of revenue are shared across the different revenue categories, and the Company is not able to meaningfully allocate such costs between separate categories of revenue. Consequently, all costs and expenses applicable to the Company’s revenue are included in the category cost of revenue in the Unaudited Condensed Consolidated Statements of Income. A portion of the amortization of intangible assets, including internal use software, relates to the Company’s cost of revenue but is reflected together with all amortization of intangible assets as a separate line item in the Company’s Unaudited Condensed Consolidated Statements of Income. Recently Adopted Accounting Standards On March 30, 2016, FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The Company adopted the new standard on January 1, 2017. As a result of the adoption of the new standard, the Company recorded all income tax effects of share-based awards in its provision for income taxes in its Unaudited Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2017. On January 1, 2017, the Company also recorded a cumulative effect adjustment of $24.4 million as an increase of retained earnings on the Company’s Unaudited Condensed Consolidated Balance Sheet, which included an increase to deferred tax assets of approximately $27.1 million related primarily to the recognition of excess tax benefits from stock-based compensation. Upon adoption, the Company elected to account for forfeitures as they occur, which may cause the timing of our non-cash stock-based compensation expense to be more volatile. Additionally, the Company adopted the change in presentation in the Unaudited Condensed Consolidated Statements of Cash Flows related to excess tax benefits on a retrospective basis. The Unaudited Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 was adjusted as follows: a $9.6 million increase to net cash provided by operating activities and a $9.6 million increase to net cash used in financing activities. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements because the Company has historically classified the statutory tax withholding as a financing activity in its Unaudited Condensed Consolidated Statements of Cash Flows. In October 2016, FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory (ASU 2016-16), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company early adopted the new standard as of January 1, 2017. The cumulative impact of applying this guidance to retained earnings was approximately $1.1 million.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Business Combinations	NOTE Acquisition of The Mutual Fund Store On February 1, 2016, the Company completed the acquisition of The Mutual Fund Store for an aggregate purchase price of $513.0 million, consisting of approximately $246.0 million in cash, net of cash acquired of $5.0 million and 9,885,889 shares of common stock valued at $267 million, financial During the nine months ended September 30, 2016, the Company incurred transaction costs totaling $6.2 million that were expensed as incurred in general and administrative expense in its Unaudited Condensed Consolidated Statements of Income. There were no transaction expenses incurred for the three months ended September 30, 2016 or the three or nine months ended September 30, 2017 in connection with this acquisition. The Mutual Fund Store had an existing compensation arrangement with its key executives for $5.8 million. Fifty percent of the compensation payment, approximately $2.9 million, was paid upon the closing of the acquisition and is reflected in the purchase consideration transferred at closing. The remaining fifty percent of the compensation payment, approximately $2.9 million, required the executives to be employed with the Company for agreed-upon service periods and therefore is accounted for as post-combination compensation expense. Approximately $1.3 million was paid related to this compensation arrangement during the nine months ended September 30, 2017. During the nine months ended September 30, 2016 and 2017, the Company paid approximately $1.8 million and $2.8 million, respectively, for previously-withheld consideration for franchises acquired by The Mutual Fund Store prior to February 1, 2016, as well as for previously-withheld consideration related to the acquisition of The Mutual Fund Store and acquisition of franchises in 2016. Acquisition of Franchises In April 2016, the Company completed the acquisition of seven franchises for a total aggregate cash consideration of $14.4 million, including $0.8 million of holdbacks reserved with respect to indemnification claims on behalf of the Company. In July and August 2016, the Company completed the acquisition of six In October 2016, the Company completed the acquisition of eight franchises for a total aggregate cash consideration of $12.8 million, including $0.6 million of holdbacks. The purchase price accounting for the October 2016 franchise acquisitions was finalized during the three months ended March 31, 2017 with no adjustments to the preliminary allocation that had been disclosed as of December 31, 2016.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2017
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	NOTE 4 — Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash equivalents are comprised of cash held primarily in money market accounts. Cash and cash equivalents consist of the following: December 31, September 30, 2016 2017 (In thousands) Cash ( 1) $ 84,169 $ 1,569 Money market fund 50,077 196,139 Total cash and cash equivalents $ 134,246 $ 197,708 (1) Effective August 2017, the Company implemented a sweep money market account which reduces most of its cash account balances to zero at the end of each business day.

Short-Term Investments

Short-Term Investments	9 Months Ended
	Sep. 30, 2017
Investments Debt And Equity Securities [Abstract]
Short-Term Investments	NOTE 5 — Short-Term Investments Short-term investments consisted of U.S. Treasury securities. In January 2016, the Company sold all short-term investments, totaling $39.9 million, and realized gains or losses, net of tax, were immaterial.

Concentration of Credit Risk an

Concentration of Credit Risk and Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Concentration of Credit Risk and Fair Value of Financial Instruments	NOTE 6 — Concentration of Credit Risk and Fair Value of Financial Instruments The Company measures and reports its investments in money market funds at fair value on a recurring basis, which approximates their carrying value due to the short period of time to maturity. There have been no changes in the Company’s valuation techniques during the nine months ended September 30, 2017. The money market funds are classified as Level 1. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis: As of December 31, 2016 As of September 30, 2017 Total Fair Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 50,077 $ 50,077 $ — $ — $ 196,139 $ 196,139 $ — $ — (1) Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. (2) Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. (3) Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily in highly-rated taxable money market funds which hold securities issued or guaranteed by the United States government or their agencies. These deposits may exceed federal deposit insurance limits. The fair value of the Company’s money market funds is based on a trade date basis on the last business day of the accounting period. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. The Company’s customers are concentrated in the United States. The Company performs ongoing credit evaluations of its customers and does not require collateral. The Company reviews the need for allowances for potential credit losses and such losses have been insignificant to date. Significant Customer Information One customer accounted for 10% of accounts receivable as of September 30, 2017. No customers accounted for 10% or more of accounts receivable as of December 31, 2016. This same customer accounted for 11% of revenue for the three months ended September 30, 2017. No customers accounted for 10% or more of revenue for the three months ended September 30, 2016 or the nine months ended September 30, 2016 or 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	NOTE 7 — Goodwill and Intangible Assets There were no transactions or events that impacted goodwill during the nine months ended September 30, 2017. Accordingly, goodwill was $312.0 million at both December 31, 2016 and September 30, 2017. Intangible assets as of December 31, 2016 and September 30, 2017 consisted of the following: December 31, 2016 September 30, 2017 (In thousands) Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 14 - 19 $ 164,338 $ 7,781 $ 156,557 $ 164,338 $ 14,451 $ 149,887 Franchise agreements and reacquired franchisee rights <1 - 9 2,697 498 2,199 2,697 716 1,981 Favorable leases, net 6 140 22 118 140 40 100 Trademarks/Trade names 20 39,230 1,810 37,420 39,230 3,292 35,938 Internal use software 2 - 4 60,965 51,508 9,457 67,889 55,803 12,086 Total $ 267,370 $ 61,619 $ 205,751 $ 274,294 $ 74,302 $ 199,992 Amortization expense related to intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 (In thousands) Customer relationships $ 2,129 $ 2,224 $ 5,543 $ 6,671 Franchise agreements and reacquired franchisee rights 81 72 425 218 Favorable leases, net 6 6 16 18 Trademarks/Trade names 494 494 1,317 1,481 Internal use software ( 1) 1,302 1,493 3,836 4,295 Amortization expense $ 4,012 $ 4,289 $ 11,137 $ 12,683 (1) For the three and nine months ended September 30, 2016, the three and nine months ended September 30, 2017, The following table presents the estimated future amortization of intangible assets as of September 30, 2017: (In thousands) Years ending December 31: 2017 $ 4,262 2018 16,230 2019 14,277 2020 13,394 2021 11,283 Thereafter 140,546 $ 199,992

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stockholders' Equity	NOTE 8 — Stockholders’ Equity Stock-based Compensation The following table summarizes the stock-based compensation, as included in the Unaudited Condensed Consolidated Statements of Income, by functional area: Three Months Ended September 30, Nine Months Ended September 30, 2016 (1) 2017 2016 2017 (In thousands) Stock-based compensation: Cost of revenue $ 2,111 $ 2,656 $ 5,606 $ 7,606 Research and development 1,762 1,967 4,342 5,636 Sales and marketing 2,696 2,793 7,265 6,441 General and administrative 2,871 1,454 6,751 6,524 Amortization of internal use software, included in amortization of intangible assets 140 146 343 410 Total stock-based compensation $ 9,580 $ 9,016 $ 24,307 $ 26,617 (1) The amounts in the above table for the three and nine months ended September 30, 2016, On January 1, 2017, the Company adopted ASU No. ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting and elected to account for forfeitures as they occur, which may cause the timing of stock-based compensation expense to be more volatile. Stock-based compensation expense for performance stock units (PSUs) associated with the 2013-2017 Long Term Incentive Program (LTIP) is based on the award’s fair value as of the grant date, as well as the estimated probability of achieving the objective performance criteria pre-established by the Compensation Committee of the Board of Directors. As of June 30, 2017, the Company determined that certain performance criteria were improbable of achievement and accordingly reversed plan-to-date stock-based compensation expense recognized related to these certain criteria, which was immaterial for the periods presented. Cash Dividends On October 31, 2017, the Board of Directors declared a quarterly dividend of $0.07 per share to be paid on January 5, 2018 to record-holders as of December 14, 2017. While the Company currently expects to pay comparable cash dividends on a quarterly basis in the future, any future determination with respect to the declaration and payment of dividends will be at the discretion of the Board of Directors. As of September 30, 2017, the Company had a dividend payable balance of $4.4 million, which was paid to stockholders in October 2017.

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Common Share	NOTE 9 — Net Income Per Common Share Basic net income per common share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by giving effect to all dilutive potential common shares, including options, RSUs, and PSUs. Repurchased shares are held as treasury stock and outstanding shares used to calculate earnings per share have been reduced by the weighted number of repurchased shares. On February 1, 2016, the Company issued 9,885,889 shares of its common stock as part of the consideration to acquire The Mutual Fund Store. The following table sets forth the computation of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 (In Numerator (basic and diluted): Net income $ 7,147 $ 15,419 $ 19,519 $ 40,396 Denominator (basic): Net weighted average common shares outstanding 61,838 63,181 60,608 62,877 Denominator (diluted): Weighted average common shares outstanding 61,838 63,181 60,608 62,877 Dilutive stock options outstanding 547 655 583 934 Dilutive unvested restricted stock units 601 786 453 831 Dilutive unvested performance stock units 15 20 13 18 Net weighted average common shares outstanding 63,001 64,642 61,657 64,660 Net income per share attributable to holders of common stock: Basic $ 0.12 $ 0.24 $ 0.32 $ 0.64 Diluted $ 0.11 $ 0.24 $ 0.32 $ 0.62 Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares: Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 (In thousands) Stock options outstanding 4,441 2,098 3,863 1,570 Restricted stock units outstanding 4 74 94 82 Total anti-dilutive common equivalent shares 4,445 2,172 3,957 1,652

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 — Income Taxes The Company recorded an income tax provision of $4.4 million and $10.0 million for the three months ended September 30, 2016 and 2017, resulting in an effective tax rate of 38% and 39%, respectively. During the three months ended September 30, 2017, the Company’s effective tax rate was higher due primarily to the income tax effects of stock award cancellations. The Company recorded an income tax provision of $14.0 million and $21.5 million for the nine months ended September 30, 2016 and 2017, respectively, resulting in an effective tax rate of 42% and 35%, respectively. During the nine months ended September 30, 2016, the Company’s effective tax rate was higher due primarily to non-deductible expenditures incurred in connection with acquisition activity. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. All tax years since inception are open due to loss carryforwards and may be subject to examination in one or more jurisdictions. At December 31, 2016, the Company had net operating loss carryforwards for federal purposes of approximately $83.1 million that expire at varying dates through 2036. As of December 31, 2016, the Company continued to believe that sufficient positive evidence exists from historical operations and future projections to conclude that it is more likely than not to fully realize its deferred tax assets in future periods. The Company continuously evaluates facts representing positive and negative evidence in the determination of the realizability of the deferred tax assets. As of December 31, 2016, the Company had gross unrecognized tax benefits for income taxes associated with uncertain tax positions of $5.5 million, and does not expect this to change materially for the remainder of the year. On January 1, 2017, the Company adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires excess tax benefits and deficiencies to be a component of income tax expense, and has increased volatility within the Company's provision for income taxes as the amount of excess tax benefits or deficiencies from stock-based compensation awards are dependent on the stock price at the date the awards vest. As a result, the Company's income tax expense and associated effective tax rate will be impacted by fluctuations in stock price between the grant dates and vesting dates of equity awards. For the three months ended September 30, 2017, the net excess tax expense from stock options increased the effective tax rate by 1% and for the nine months ended September 30, 2017, the excess benefits from stock options decreased the effective tax rate by 4%.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 11— Commitments and Contingencies Service Level Agreements The Company includes service level agreements with its customers warranting certain levels of reliability and performance. The maximum total commitments under these obligations would have less than a $1.0 million impact on the Company’s annual operating results. Self-Insurance The Company provides self-insured medical benefits for employees based upon their coverage elections. The medical plan carries a stop-loss policy which will protect from individual claims during the plan year exceeding $100,000 and when cumulative medical claims exceed 120% of expected claims for the plan year. The Company records estimates of the total costs of claims incurred based on an analysis of historical data. The liability for self-insured medical claims is included within accrued compensation and benefits in the Company’s Unaudited Condensed Consolidated Balance sheet and was $0.5 million as of September 30, 2017. Purchase Obligations In September 2017, the Company entered into a non-cancellable, long-term contract for software and data services with future minimum payments of $7.7 million through January 2023.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	NOTE 12— Subsequent Events On October 24, 2017, the Board of Directors approved a stock repurchase program of up to $60 million of the Company’s common stock over the next twelve months. Any share repurchases may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate, and may or may not be made pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and amount of any shares repurchased will depend on a variety of factors, including stock price, market conditions, corporate and regulatory requirements (including applicable securities laws and regulations and the rules of The NASDAQ Stock Market), any additional constraints related to material inside information the Company may possess, and capital availability. The Company has no commitment to make any repurchases. The stock repurchase program may be modified, extended or terminated by the Board of Directors at any time and there is no guarantee as to the exact number of shares, if any, that will be repurchased under the program. The stock repurchase program is expected to be funded by available working capital.

Basis of Presentation and Pri18

Basis of Presentation and Principles of Consolidation (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates under different assumptions or conditions.
Segment Information	Segment Information The Company’s chief operating decision-maker, its chief executive officer, reviews the Company’s operating results on an aggregate, consolidated basis and manages its operations as a single operating segment. In addition, all of the Company’s operations and assets are based in the United States.
Business Combinations	Business Combinations The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill consists of the excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment each year in the fourth quarter, or more frequently if facts and circumstances warrant a review, by using a two-step process. The Company has concluded that it has a single reporting unit for the purpose of goodwill impairment testing, and accordingly, all goodwill resides within a single reporting unit. The Company compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, the Company would perform a measurement of the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied fair value of the goodwill. If the carrying amount of the goodwill is greater than the implied value, an impairment loss is recognized for the difference. There have been no goodwill impairment losses recognized to date. The Company does not have any indefinite lived intangible assets besides goodwill. Intangible assets with definite useful lives are recorded their acquired value less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances raise doubt about recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. There were no impairments or changes in useful lives of acquired intangible assets for the periods presented. Intangible assets consist primarily of customer relationships, trademarks, trade names, internal use software and reacquired franchisee rights. These intangible assets are acquired through business combinations or, in the case of capitalized software costs, are internally developed. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from less than 1 year to 20 years.
Long-Lived Assets	Long-Lived Assets Long-lived assets, such as property, equipment, direct response advertising and intangible assets, including capitalized internal use software, subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets or asset group will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows of the assets or asset group are less than their carrying amount, the Company would recognize an impairment loss based on any excess of the carrying amount of the asset or asset group over their fair value. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment charges related to long-lived assets were immaterial for the periods presented.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery has occurred or the service has been made available to the customer, which occurs upon completion of implementation and connectivity services, if applicable, and acceptance by the customer; • The collectability of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. The Company generates its revenue through three primary sources: professional management, platform and other revenue. Professional Management. The Company derives professional management revenue from client fees paid by or on behalf of both DC and individual investor clients who are enrolled in one of its discretionary portfolio management services (either the Professional Management service or the Personal Advisor service) for the management of their account assets. The Company continues to use the term professional management revenue to include revenue from both the Professional Management and Personal Advisor services. The Company’s Professional Management service is a discretionary personalized portfolio management service for DC participants who want to work with or delegate the management of their retirement accounts to a professional with the help of an advisor team. Personal Advisor is a personalized service that can provide discretionary portfolio management on a client’s 401(k), IRA and/or taxable assets, as well as comprehensive financial planning and a dedicated advisor representative that participants can meet with in person, online or by phone. The Company’s retirement income solutions, including Income+ and Retirement Paycheck, which are features of its Professional Management and Personal Advisor services, respectively, provide clients approaching or in retirement with discretionary portfolio management with an income objective and steady monthly payments from their accounts during retirement, including Social Security claiming guidance and planning. The services are generally made available to prospective clients by written agreements with the plan provider, the plan sponsor and the plan participant in a DC plan (and may be provided on a subadvisory basis) and by written agreements with individual investors. The Company’s arrangements with clients using discretionary portfolio management services generally provide for fees based on the value of assets managed and are generally payable quarterly in arrears. The majority of client fees for DC accounts, for both advisory and subadvisory relationships, are calculated on a monthly basis, as the product of client fee rates and the value of assets under management (AUM) at or near the end of each month. For IRA and taxable accounts, client fees are calculated on a quarterly basis at the end of each quarter. Platform. The Company derives platform revenue from recurring, subscription-based fees for access to its services, including Online Advice, education and guidance, and to a lesser extent, from setup fees. Online Advice is a non-discretionary, Internet-based investment advisory service, which includes personalized online savings and investment advice and retirement income projections for clients who want to manage their retirement themselves. The arrangements generally provide for fees to be paid by the plan sponsor, plan provider or the DC plan itself, depending on the plan structure. Platform revenue is generally paid annually or quarterly in advance and recognized ratably over the term of the subscription period beginning after the completion of customer setup and data connectivity. Setup fees are recognized ratably over seven years and are immaterial for the periods presented. Other. Other revenue includes reimbursement for a portion of marketing and client materials from certain subadvisory relationships. Non-retirement account servicing fees were applicable for the period of February 1, 2016 to December 31, 2016. The fees for non-retirement account servicing do not impact client fees paid for discretionary portfolio management services, and are disclosed in the applicable Form ADV of the Company’s advisory subsidiaries. Franchise royalty fees were applicable for the period of February 1, 2016 to September 30, 2016, as the Company had acquired all remaining franchises as of October 2016. Professional management revenue earned subsequent to the respective acquisition date of the franchises is included in professional management revenue. The franchise royalty fees were recognized as revenue as the services were performed by the franchisees and were based on specified percentages of the franchisees’ advisory fees billed to their clients, which were primarily based on predetermined percentages of the market value of the AUM and were affected by changes in the AUM. Costs associated with reimbursed printed fulfillment materials are expensed to cost of revenue as incurred.
Cost of Revenue	Cost of Revenue Cost of revenue includes fees paid to plan providers for connectivity to plan and plan participant data, printed materials fulfillment costs for certain subadvisory relationships for which a portion are reimbursed, printed client materials, and employee-related costs for in-person dedicated advisor centers and call center advisors, operations, implementations, technical operations, portfolio management and client service administration. Costs in this area are related primarily to payments to third parties, employee compensation and related expenses, facilities expenses, purchased materials and depreciation. The expenses included in cost of revenue are shared across the different revenue categories, and the Company is not able to meaningfully allocate such costs between separate categories of revenue. Consequently, all costs and expenses applicable to the Company’s revenue are included in the category cost of revenue in the Unaudited Condensed Consolidated Statements of Income. A portion of the amortization of intangible assets, including internal use software, relates to the Company’s cost of revenue but is reflected together with all amortization of intangible assets as a separate line item in the Company’s Unaudited Condensed Consolidated Statements of Income.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards On March 30, 2016, FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The Company adopted the new standard on January 1, 2017. As a result of the adoption of the new standard, the Company recorded all income tax effects of share-based awards in its provision for income taxes in its Unaudited Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2017. On January 1, 2017, the Company also recorded a cumulative effect adjustment of $24.4 million as an increase of retained earnings on the Company’s Unaudited Condensed Consolidated Balance Sheet, which included an increase to deferred tax assets of approximately $27.1 million related primarily to the recognition of excess tax benefits from stock-based compensation. Upon adoption, the Company elected to account for forfeitures as they occur, which may cause the timing of our non-cash stock-based compensation expense to be more volatile. Additionally, the Company adopted the change in presentation in the Unaudited Condensed Consolidated Statements of Cash Flows related to excess tax benefits on a retrospective basis. The Unaudited Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 was adjusted as follows: a $9.6 million increase to net cash provided by operating activities and a $9.6 million increase to net cash used in financing activities. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements because the Company has historically classified the statutory tax withholding as a financing activity in its Unaudited Condensed Consolidated Statements of Cash Flows. In October 2016, FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory (ASU 2016-16), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company early adopted the new standard as of January 1, 2017. The cumulative impact of applying this guidance to retained earnings was approximately $1.1 million.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2017
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and cash equivalents consist of the following: December 31, September 30, 2016 2017 (In thousands) Cash ( 1) $ 84,169 $ 1,569 Money market fund 50,077 196,139 Total cash and cash equivalents $ 134,246 $ 197,708 (1) Effective August 2017, the Company implemented a sweep money market account which reduces most of its cash account balances to zero at the end of each business day.

Concentration of Credit Risk 20

Concentration of Credit Risk and Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value on Recurring Basis	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis: As of December 31, 2016 As of September 30, 2017 Total Fair Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 50,077 $ 50,077 $ — $ — $ 196,139 $ 196,139 $ — $ — (1) Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. (2) Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. (3) Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets as of December 31, 2016 and September 30, 2017 consisted of the following: December 31, 2016 September 30, 2017 (In thousands) Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 14 - 19 $ 164,338 $ 7,781 $ 156,557 $ 164,338 $ 14,451 $ 149,887 Franchise agreements and reacquired franchisee rights <1 - 9 2,697 498 2,199 2,697 716 1,981 Favorable leases, net 6 140 22 118 140 40 100 Trademarks/Trade names 20 39,230 1,810 37,420 39,230 3,292 35,938 Internal use software 2 - 4 60,965 51,508 9,457 67,889 55,803 12,086 Total $ 267,370 $ 61,619 $ 205,751 $ 274,294 $ 74,302 $ 199,992
Schedule of Amortization Expense Related to Intangible Assets	Amortization expense related to intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 (In thousands) Customer relationships $ 2,129 $ 2,224 $ 5,543 $ 6,671 Franchise agreements and reacquired franchisee rights 81 72 425 218 Favorable leases, net 6 6 16 18 Trademarks/Trade names 494 494 1,317 1,481 Internal use software ( 1) 1,302 1,493 3,836 4,295 Amortization expense $ 4,012 $ 4,289 $ 11,137 $ 12,683 (1) For the three and nine months ended September 30, 2016, the three and nine months ended September 30, 2017,
Schedule of Estimated Future Amortization of Intangible Assets	The following table presents the estimated future amortization of intangible assets as of September 30, 2017: (In thousands) Years ending December 31: 2017 $ 4,262 2018 16,230 2019 14,277 2020 13,394 2021 11,283 Thereafter 140,546 $ 199,992

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock-Based Compensation by Functional Area	The following table summarizes the stock-based compensation, as included in the Unaudited Condensed Consolidated Statements of Income, by functional area: Three Months Ended September 30, Nine Months Ended September 30, 2016 (1) 2017 2016 2017 (In thousands) Stock-based compensation: Cost of revenue $ 2,111 $ 2,656 $ 5,606 $ 7,606 Research and development 1,762 1,967 4,342 5,636 Sales and marketing 2,696 2,793 7,265 6,441 General and administrative 2,871 1,454 6,751 6,524 Amortization of internal use software, included in amortization of intangible assets 140 146 343 410 Total stock-based compensation $ 9,580 $ 9,016 $ 24,307 $ 26,617 (1) The amounts in the above table for the three and nine months ended September 30, 2016,

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income Per Share	The following table sets forth the computation of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 (In Numerator (basic and diluted): Net income $ 7,147 $ 15,419 $ 19,519 $ 40,396 Denominator (basic): Net weighted average common shares outstanding 61,838 63,181 60,608 62,877 Denominator (diluted): Weighted average common shares outstanding 61,838 63,181 60,608 62,877 Dilutive stock options outstanding 547 655 583 934 Dilutive unvested restricted stock units 601 786 453 831 Dilutive unvested performance stock units 15 20 13 18 Net weighted average common shares outstanding 63,001 64,642 61,657 64,660 Net income per share attributable to holders of common stock: Basic $ 0.12 $ 0.24 $ 0.32 $ 0.64 Diluted $ 0.11 $ 0.24 $ 0.32 $ 0.62
Anti-dilutive Common Equivalent Shares	Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares: Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 (In thousands) Stock options outstanding 4,441 2,098 3,863 1,570 Restricted stock units outstanding 4 74 94 82 Total anti-dilutive common equivalent shares 4,445 2,172 3,957 1,652

Organization and Description 24

Organization and Description of the Business - Additional Information (Detail)	Sep. 30, 2017Store
Retail Site [Member]
Organization And Description Of The Business [Line Items]
Number of stores	130

Basis of Presentation and Pri25

Basis of Presentation and Principles of Consolidation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)Segment	Sep. 30, 2016USD ($)
Significant Accounting Policies [Line Items]
Number of reportable segment | Segment	1
Goodwill impairment losses recognized	$ 0
Indefinite lived intangible assets	0
Impairments on acquired intangible assets	$ 0
Platform setup fees recognition period	7 years
Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member]
Significant Accounting Policies [Line Items]
Recognition of excess tax benefits from stock-based compensation	$ 27,100,000
Increase to net cash provided by operating activities		$ 9,600,000
Increase to net cash used in financing activities		$ 9,600,000
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member]
Significant Accounting Policies [Line Items]
Cumulative impact on retained earnings	24,400,000
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member]
Significant Accounting Policies [Line Items]
Cumulative impact on retained earnings	$ 1,100,000
Minimum [Member]
Significant Accounting Policies [Line Items]
Finite-lived intangible assets, amortization period	1 year
Maximum [Member]
Significant Accounting Policies [Line Items]
Finite-lived intangible assets, amortization period	20 years

Business Combinations - Additio

Business Combinations - Additional Information (Detail)	Feb. 01, 2016USD ($)shares	Oct. 31, 2016USD ($)Franchise	Apr. 30, 2016USD ($)Franchise	Aug. 31, 2016USD ($)Franchise	Sep. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Business Acquisition [Line Items]
Business combination, consideration paid in cash								$ 2,845,000	$ 1,771,000
The Mutual Fund Store [Member]
Business Acquisition [Line Items]
Aggregate purchase price	$ 513,000,000
Business combination, consideration paid in cash	246,000,000
Business acquisitions, cash acquired	$ 5,000,000
Number of equity shares issued for business acquisition | shares	9,885,889
Value of equity shares issued for business acquisition	$ 267,000,000
Business acquisition, agreement date								Nov. 5, 2015
Business acquisition, settlement of preacquisition contingency					$ 1,300,000			$ 1,300,000
The Mutual Fund Store [Member] | Executive [Member]
Business Acquisition [Line Items]
Existing compensation arrangement	$ 5,800,000
The Mutual Fund Store [Member] | Executive [Member] | Cliff vesting on January 1, 2016 [Member]
Business Acquisition [Line Items]
Percentage of compensation paid	50.00%
Compensation arrangement paid	$ 2,900,000
The Mutual Fund Store [Member] | Executive [Member] | Cliff vesting on January 1, 2018 [Member]
Business Acquisition [Line Items]
Existing compensation arrangement	$ 2,900,000
Remaining percentage of compensation payment	50.00%
The Mutual Fund Store [Member] | General and Administrative [Member]
Business Acquisition [Line Items]
Acquisition-related costs					$ 0		$ 0	0	6,200,000
The Mutual Fund Store and Acquisition of Franchises 2016 [Member]
Business Acquisition [Line Items]
Business combination, consideration paid in cash								$ 2,800,000	$ 1,800,000
Acquisition of Franchises April 2016 [Member]
Business Acquisition [Line Items]
Business combination, consideration paid in cash			$ 14,400,000
Business acquisition, agreement date								2016-04
Number of franchises acquisition | Franchise			7
Holdback amounts reserved with respect to indemnification claims			$ 800,000
Acquisition of Franchises July and August 2016 [Member]
Business Acquisition [Line Items]
Business combination, consideration paid in cash				$ 8,100,000
Number of franchises acquisition | Franchise				6
Holdback amounts reserved with respect to indemnification claims				$ 300,000
Acquisition of Franchises October 2016 [Member]
Business Acquisition [Line Items]
Business combination, consideration paid in cash		$ 12,800,000
Business acquisition, agreement date								2016-10
Number of franchises acquisition | Franchise		8
Holdback amounts reserved with respect to indemnification claims		$ 600,000
Adjustments to preliminary allocation						$ 0

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash And Cash Equivalents [Abstract]
Cash	$ 1,569	$ 84,169
Money market fund	196,139	50,077
Total cash and cash equivalents	$ 197,708	$ 134,246	$ 118,806	$ 305,216

Cash and Cash Equivalents (Pare

Cash and Cash Equivalents (Parenthetical) (Detail)	Aug. 01, 2017USD ($)
Cash And Cash Equivalents [Abstract]
Sweep money market account, daily cash account balance	$ 0

Short-Term Investments - Additi

Short-Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jan. 31, 2016	Sep. 30, 2016
Short Term Investments [Abstract]
Proceeds from Sale of Short-term Investments	$ 39,923	$ 39,923

Summary of Financial Assets Mea

Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Money Market Funds [Member] - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis		$ 196,139	$ 50,077
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis	[1]	$ 196,139	$ 50,077
[1]	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Concentration of Credit Risk 31

Concentration of Credit Risk and Fair Value of Financial Instruments - Additional Information (Detail) - Credit Concentration Risk [Member] - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of major customers	1				0
Percentage of accounts receivable or revenue	10.00%
Revenue [Member]
Concentration Risk [Line Items]
Number of major customers	1	0	0	0
Percentage of accounts receivable or revenue	11.00%

Goodwill and Intangible Asset32

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill transactions during period	$ 0
Goodwill	$ 312,020,000	$ 312,020,000

Schedule of Intangible Assets (

Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 274,294	$ 267,370
Accumulated Amortization	74,302	61,619
Net Carrying Amount	$ 199,992	205,751
Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	1 year
Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	20 years
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 164,338	164,338
Accumulated Amortization	14,451	7,781
Net Carrying Amount	$ 149,887	156,557
Customer Relationships [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	14 years
Customer Relationships [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	19 years
Franchisee Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,697	2,697
Accumulated Amortization	716	498
Net Carrying Amount	$ 1,981	2,199
Franchisee Agreements [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	1 year
Franchisee Agreements [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	9 years
Favorable Leases, Net [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	6 years
Gross Carrying Amount	$ 140	140
Accumulated Amortization	40	22
Net Carrying Amount	$ 100	118
Trademarks/Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	20 years
Gross Carrying Amount	$ 39,230	39,230
Accumulated Amortization	3,292	1,810
Net Carrying Amount	35,938	37,420
Internal Use Software [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	67,889	60,965
Accumulated Amortization	55,803	51,508
Net Carrying Amount	$ 12,086	$ 9,457
Internal Use Software [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	2 years
Internal Use Software [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Useful Life (years)	4 years

Schedule of Amortization Expens

Schedule of Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software		$ 4,289	$ 4,012	$ 12,683	$ 11,137
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software		2,224	2,129	6,671	5,543
Franchise Agreements and Reacquired Franchisee Rights [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software		72	81	218	425
Favorable Leases, Net [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software		6	6	18	16
Trademarks/Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software		494	494	1,481	1,317
Internal Use Software [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, including internal use software	[1]	$ 1,493	$ 1,302	$ 4,295	$ 3,836
[1]	For the three and nine months ended September 30, 2016, internal use software amortization included approximately $0.1 million and $0.3 million of stock-based compensation expense, respectively, and for the three and nine months ended September 30, 2017, internal use software amortization included approximately $0.1 million and $0.4 million of stock-based compensation expense, respectively.

Schedule of Amortization Expe35

Schedule of Amortization Expense Related to Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	[1]	Sep. 30, 2017	Sep. 30, 2016	[1]
Finite Lived Intangible Assets [Line Items]
Total stock-based compensation	$ 9,016	$ 9,580		$ 26,617	$ 24,307
Amortization Of Internal Use Software Included In Amortization Of Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Total stock-based compensation	$ 146	$ 140		$ 410	$ 343
[1]	The amounts in the above table for the three and nine months ended September 30, 2016, have been adjusted to reflect the appropriate amounts of stock-based compensation recognized for each of the financial statement captions. There was no impact to the total amount of stock-based compensation recognized for the period.

Schedule of Estimated Future Am

Schedule of Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
2,017	$ 4,262
2,018	16,230
2,019	14,277
2,020	13,394
2,021	11,283
Thereafter	140,546
Net Carrying Amount	$ 199,992	$ 205,751

Stock-Based Compensation by Fun

Stock-Based Compensation by Functional Area (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	[1]	Sep. 30, 2017	Sep. 30, 2016	[1]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 9,016	$ 9,580		$ 26,617	$ 24,307
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,656	2,111		7,606	5,606
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,967	1,762		5,636	4,342
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,793	2,696		6,441	7,265
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,454	2,871		6,524	6,751
Amortization Of Internal Use Software Included In Amortization Of Intangible Assets [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 146	$ 140		$ 410	$ 343
[1]	The amounts in the above table for the three and nine months ended September 30, 2016, have been adjusted to reflect the appropriate amounts of stock-based compensation recognized for each of the financial statement captions. There was no impact to the total amount of stock-based compensation recognized for the period.

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Oct. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Stockholders Equity [Line Items]
Dividends declared per share of common stock		$ 0.07	$ 0.07	$ 0.21	$ 0.21
Dividend payable		$ 4,423	$ 3,713	$ 4,423	$ 3,713	$ 4,350
Dividends paid date		2017-10		2017-10
Subsequent Event [Member]
Stockholders Equity [Line Items]
Dividends to be paid date	Jan. 5, 2018
Dividend payable record date	Dec. 14, 2017
Quarterly Cash Dividend [Member] | Subsequent Event [Member]
Stockholders Equity [Line Items]
Dividends declared per share of common stock	$ 0.07

Net Income Per Common Share - A

Net Income Per Common Share - Additional Information (Detail)	Feb. 01, 2016shares
The Mutual Fund Store [Member]
Business Acquisition Equity Interests Issued Or Issuable [Line Items]
Common Stock Shares Issued	9,885,889

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator (basic and diluted):
Net income	$ 15,419	$ 7,147	$ 40,396	$ 19,519
Denominator (basic):
Net weighted average common shares outstanding	63,181	61,838	62,877	60,608
Denominator (diluted):
Net weighted average common shares outstanding	63,181	61,838	62,877	60,608
Net weighted average common shares outstanding (diluted)	64,642	63,001	64,660	61,657
Net income per share attributable to holders of common stock:
Basic	$ 0.24	$ 0.12	$ 0.64	$ 0.32
Diluted	$ 0.24	$ 0.11	$ 0.62	$ 0.32
Stock Options Outstanding [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	655	547	934	583
Restricted Stock Units (RSUs) [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	786	601	831	453
Performance Stock Units [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	20	15	18	13

Anti-dilutive Common Equivalent

Anti-dilutive Common Equivalent Shares (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares	2,172	4,445	1,652	3,957
Stock Options Outstanding [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares	2,098	4,441	1,570	3,863
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares	74	4	82	94

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes [Line Items]
Income tax provision	$ 9,963	$ 4,376	$ 21,490	$ 14,031
Effective tax rate	39.00%	38.00%	35.00%	42.00%
Gross unrecognized tax benefits					$ 5,500
Increase (decrease) in effective income tax rate	1.00%		(4.00%)
Internal Revenue Service (IRS) [Member]
Income Taxes [Line Items]
Net operating loss carryforwards					$ 83,100
Net operating loss carryforwards expire through			2,036

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)
Contingencies [Line Items]
Service level commitments impact on operating description	The maximum total commitments under these obligations would have less than a $1.0 million impact on the Company’s annual operating results.
Self insurance plan stop loss policy threshold limit for individual claim amount	$ 100,000
Self insurance plan stop loss policy threshold limit for cumulative medical claim percentage	120.00%
Non-cancellable long-term contract, Future Minimum payment	$ 7,700,000
Non-cancellable long-term contract, Future Minimum payment expire through	2023-01
Accrued Compensation and Benefits [Member]
Contingencies [Line Items]
Liability for self-insured medical claims	$ 500,000
Maximum [Member]
Contingencies [Line Items]
Service level commitments impact on operating	$ 1,000,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member]	Oct. 24, 2017USD ($)
Subsequent Event [Line Items]
Stock repurchase program, period in force	12 months
Common Stock [Member] | Maximum [Member]
Subsequent Event [Line Items]
Stock repurchase program, authorized amount	$ 60,000,000